ADA Could Reach $1 in the Coming Weeks, Says Cardano Analyst Dan Gambardello
Renowned Cardano expert Dan Gambardello has suggested that ADA could potentially surpass the $1 mark in the near future, despite its recent underwhelming performance.
Over the past few weeks, Cardano has been heavily impacted by the market downturn. During the recent market crash, ADA came dangerously close to falling below the $0.4 threshold. Although it has made a notable recovery and is currently trading at $0.46, it has yet to cross the significant psychological barrier of $0.5.
This lack of progress has been a source of frustration for Cardano enthusiasts, who are eagerly awaiting ADA’s breakthrough to the $1 mark. Reaching this milestone would mark the beginning of a climb towards previous highs and potentially even higher price levels.
To provide some context, ADA was last valued at $1 exactly two years ago, in April 2022. Cardano seemed poised to break this barrier in the first quarter of this year, reaching a yearly peak of $0.807 before bearish sentiment took over.
However, Gambardello remains optimistic and has proposed a timeframe in which ADA might reach $1. He believes that this goal is achievable in the coming months.
Gambardello expressed this sentiment in his latest analysis of Cardano’s performance relative to Bitcoin. In his assessment, he highlighted that ADA appears to be on the cusp of a breakout that could lead to sustained upward momentum. He noted that Cardano’s weekly relative strength index (RSI) continues to indicate oversold conditions, which he interprets as a bullish signal.
Furthermore, Gambardello observed that Cardano is approaching the 20-week moving average (MA). This technical indicator smooths out price fluctuations over a 20-week period, providing a clearer view of the market’s direction. When a cryptocurrency’s price is above the 20-week MA, it suggests bullish momentum.
Interestingly, Gambardello demonstrated that in previous cycles, when Cardano exhibited an oversold RSI signal, its price tended to approach the 20-week MA. He emphasized that such scenarios have historically preceded significant breakouts and substantial price increases.
To assess the likelihood of ADA reaching $1 based on these bullish signals, Gambardello examined the asset’s historical performance. Specifically, he analyzed the time it took for ADA to surpass $1 following the third Bitcoin halving cycle.
The analyst noted that ADA’s current consolidation pattern resembles the phase from 2019 to 2020. During this period, ADA traded with a leading zero, ranging from $0.03 in early 2019 to $0.08 in late 2020.
Using this information, Gambardello overlaid the chart pattern that Cardano displayed after its breakout in late 2020 and early 2021 when it eventually reached the $1 milestone. By applying this pattern to Cardano’s current chart, he deduced that ADA could potentially return to $1 by August of this year.
It is important to note that ADA reaching $1 from its current price of $0.4632 implies a growth of 116% over the next 12 weeks.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research and analysis before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.
